Insights

The Alumina (ASX:AWC) share price rocketed 9% to an 18-month high today

Alumina shares are surging in September. Here’s why.
The post The Alumina (ASX:AWC) share price rocketed 9% to an 18-month high today appeared first on The Motley Fool Australia. –

The Alumina Limited (ASX: AWC) share price shot up early on Monday, jumping 9.27% higher to $2.18 within the first few minutes of trade.

Those big gains have since retreated, but the Alumina share price is still trading higher, currently up 6.02% at $2.12.

Let’s take a look.

What’s driving the Alumina share price?

With no news released today, price increases and a supply shortage could be the forces behind a 25% rally in the Alumina share price in the last 7 trading sessions.

The company is engaged in a broad range of aluminium-related activities including bauxite mining, alumina refining and aluminium smelting.

Aluminium prices have hit their highest levels in more than a decade amidst potential shortages in China, according to a Reuters report.

The report said benchmark three-month aluminium climbed 2.7% to $2,722 a tonne, while the “most-traded” October aluminium contract on the Shanghai Futures Exchange closed 1.2% up at $3,311 a tonne, near its highest since August 2008.

To add some perspective, Alumina’s 1H21 results last month highlighted average realised aluminium prices of US$2,303/t.

According to reports, aluminium shortages have been fulled by production cutbacks in China. The government is increasing oversight on highly polluting industries in an attempt to meet its climate and emission goals.

Last Monday, Bloomberg said that producers in China’s southern Guangxi province would “cut output of energy-intensive materials in response to Beijing’s campaign to save power and restrain emissions”.

The Guangxi government has asked for production cuts in sectors including aluminum, alumina, steel, ferroalloys and cement. Some aluminum and alumina smelters will be required to cap output in September at half their capacity, while some new smelting projects will be delayed.

What’s next for Alumina?

The Alumina share price is up 10.3% year-to-date thanks to its recent rally. The company is bullish on the outlook for the aluminium market.

In its half-year results, the company said:

Global aluminium demand is now back to pre-virus levels, largely due to economies recovering post-COVID, helped by Government stimulus packages.

This is expected to grow with further economic recovery and greater demand for aluminium in a decarbonising world, largely due to its lightweight properties and recyclability.

From an operational perspective, the company’s “low-cost assets” were able to produce record bauxite and alumina outputs in the first half.

The post The Alumina (ASX:AWC) share price rocketed 9% to an 18-month high today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Alumina right now?

Before you consider Alumina, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Alumina wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Which ASX shares are leading the way on the ASX 300?

ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise

These were the best performing ASX 200 shares last week

Here are the top 10 ASX 200 shares on Friday

Here are the 3 heaviest traded ASX 200 shares this Friday

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!